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					Survive Bad Credit Score Difficulties
People often want to avoid gaining a bad credit score. This is mainly because it can cause difficulties in
availing of loans. So if you are faced with difficulties and you want to try to amend your situation with a
loan, you get that nagging feeling that you just went be able to get the approval that you need,
especially if you are looking out for a home loan.

But you need not fret because there are organizations willing to provide you with loans even if you have
a bad credit score. A good example is the bad credit home loan being offered by Home Loan Experts.




What is a bad credit home loan?
A bad credit home loan is a type of mortgage that is offered from a non-conforming or specialist lender
that can consider all situations, in particular for those of you with black marks on your credit file. It is
designed to help “outside of the box” applications from regular people who don’t meet the bank’s
guidelines.




What is considered to be “bad credit?”
There are many different types of impaired credit. The main types are:
  Mortgage arrears: Missed payments on your home loan. The more missed payments you have had
     in the last 6 months then the more wary lenders will be. Generally banks will not refinance your loan
     if you have missed just one repayment!
    Bad credit history: Adverse listings such as defaults, bankruptcy, judgments, court writs or too
     many credit enquiries on your Veda Advantage credit file.
    Lender credit history: Your past credit history with the lender you are applying for. Lenders have a
     very long term memory for the customers that they have had problems with in the past.
    Unpaid bills or tax: Outstanding bills such as council rates or late tax bills are a type of bad credit
     history that may not initially show up on your credit file but may be visible on the supporting
     documents you need to provide to get a loan.
    Overcommitted: If you have too many debts for your income or your total assets are less than your
     total liabilities then the major banks may assess you as being insolvent or beyond help.
Who can qualify for a home loan?
Bad credit home loans are generally suited for people who have had something bad happen to them such
as a divorce, loss of job, injury or business failure which has resulted in black marks on their credit file.
Lenders dislike people who did not want to pay for their defaults or those who keep having ongoing credit
problems. Below are a list of the basic qualifying criteria:
  Small paid default: If you have a small default for less than $500 and it has been paid more than
     six months ago then we can help you borrow up to 90% of the value of your property.
    More than one small paid default: If you have less than $1,000 in paid defaults from financial
     institutions (e.g. banks) and less than $500 in paid defaults from non-financial institutions (e.g.
     phone companies) then you can borrow up to 85% or possibly 90% of the property value.
    Major paid defaults: If you have up to $3,000 in paid defaults we are able to help you borrow up to
     80% of the property value with a prime lender, or up to 100% of the property value if you have
     a security guarantee from your parents. Larger paid defaults up to $10,000 can be considered on a
     case by case basis if you have a very good explanation which is backed up with strong evidence.
    Unpaid defaults: If you have any unpaid defaults then you can only borrow 80% of the property
     value, this is with a non-conforming lender.
    Judgements / court writs: If you have any judgements / court writs then you can only borrow 80%
     of the property value, this is with a non-conforming lender.
    Part IX agreement: Please refer to our Part IX agreement page for more information.
    Bankruptcy: Please refer to our bankruptcy mortgages page for more information.

				
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Description: This kind of situation can be prevented if a borrower knows what his credit score is. With the help of a credit score calculator. There are different calculators you can use to have an idea what your credit rating is.